Ransomware is no longer an obscure cybersecurity threat—it’s a billion-dollar industry, run by organized criminal groups that operate like full-scale businesses. Attacks are relentless, targeting everyone from small businesses to multinational corporations. In 2023, ransomware damages hit $20 billion worldwide, with 66% of businesses falling victim.
The premise is simple: an attacker locks down critical systems, encrypts data, and demands a ransom. The twist? Paying doesn’t guarantee anything. Many businesses hand over thousands (or even millions) only to find their data permanently gone, their files still locked, and their networks still compromised.
What is Ransomware?
Ransomware is a type of malware that encrypts a company’s files or locks users out of their systems. The attacker then demands a ransom payment, usually in cryptocurrency, in exchange for a decryption key.
How Ransomware Works
It starts with a single mistake—an employee clicking a malicious email attachment, downloading an infected file, or falling for a phishing scam. The malware spreads fast, encrypting files and locking users out. A ransom demand follows, often accompanied by threats of leaking sensitive data if payment isn’t made.
Some companies try to negotiate. Some pay in desperation. Others refuse, relying on backups or recovery strategies. But regardless of the approach, damage is inevitable. A shutdown lasting even a few hours can cost millions in lost revenue.
Ransomware Isn’t One Attack—It’s Many
There’s no single type of ransomware, just as there’s no single way to defend against it. Some variants encrypt files, others lock entire systems. Some steal sensitive data before locking you out, doubling the extortion threat. The most dangerous trend? Ransomware-as-a-Service (RaaS), where criminals don’t need technical skills to launch attacks. They simply buy ready-made ransomware kits from cybercriminal networks and deploy them against unsuspecting businesses.
The most infamous attacks have left lasting scars. WannaCry spread across 150 countries, shutting down hospitals, banks, and government agencies using an EternalBlue exploit. The Colonial Pipeline attack disrupted fuel supplies across the U.S., forcing a $4.4 million ransom payment. JBS, the world’s largest meat supplier, paid $11 million to regain control of its systems. And those are just the cases that made headlines.
The Cost of Getting It Wrong
Ransomware isn’t just about the ransom itself. The bigger cost comes from downtime, reputational damage, and regulatory fines. The average recovery cost per attack exceeds $1.85 million, and many businesses never recover at all. For small and mid-sized companies, the risk is existential—60% of small businesses that suffer a ransomware attack shut down within six months.
A single attack can mean weeks of lost productivity, disrupted operations, and a trust deficit that’s hard to rebuild. Customers don’t want to do business with a company that let their personal data fall into the hands of cybercriminals.
How to Defend Against Ransomware
Defending against ransomware isn’t about a single fix. It’s a multi-layered strategy that includes employee training, endpoint security, strong authentication, and backup planning. Businesses that take cybersecurity seriously don’t just survive—they stay operational when others are forced to pay up or shut down.
The first line of defense is employee awareness. The vast majority of ransomware attacks start with phishing emails, tricking employees into clicking malicious links or opening infected attachments. Regular cybersecurity training isn’t optional—it’s essential. Employees should know how to spot phishing attempts, recognize suspicious links, and avoid downloading unverified files.
The second layer is strong endpoint protection. Antivirus alone isn’t enough. Businesses need advanced security solutions that include endpoint detection and response (EDR), firewalls, intrusion detection systems, and real-time threat monitoring. Keeping software up to date is equally critical—WannaCry exploited an unpatched Windows vulnerability, and businesses that had applied the update were unaffected.
The third pillar is a backup strategy. A business that regularly backs up critical data can recover without paying a ransom. The 3-2-1 backup rule is the gold standard: keep three copies of your data, store it on two different types of media, and keep one copy completely offline. Backups should be tested frequently—discovering they don’t work after an attack is too late.
Authentication is the fourth line of defense. Multi-Factor Authentication (MFA) prevents attackers from using stolen credentials to access networks. Even if an employee’s password is compromised, MFA blocks unauthorized access, reducing the attack surface significantly. Microsoft reports that MFA prevents 99.9% of unauthorized login attempts—yet many businesses still don’t enforce it.
Finally, 24/7 monitoring is the safety net that stops attacks before they escalate. Managed IT Services provide round-the-clock threat detection, ensuring that ransomware doesn’t gain a foothold in the first place. Real-time monitoring flags suspicious behavior, automated security patches close vulnerabilities, and disaster recovery plans ensure businesses can restore systems without negotiating with criminals.
If you’re not sure whether your defenses are up to the challenge, take a look at our guide on The Top 10 Cybersecurity Tools Every Business Should Have to ensure your security stack is working for you, not against you.
What To Do If Ransomware Hits
First, disconnect infected devices immediately to prevent further spread. Isolating the attack can mean the difference between losing a few files and having an entire network locked down.
Next, notify IT security teams or a Managed Service Provider. Attempting to fix the problem without professional help can make recovery harder. Experts can determine the extent of the damage, identify the ransomware variant, and recommend the best course of action.
Reporting the attack is critical. Law enforcement agencies, including the FBI, advise against paying ransoms since doing so fuels more attacks. Instead, companies should report the incident to the FBI’s Cybercrime Division or local authorities.
If backups exist, restoring data is the safest recovery method. However, backups must be air-gapped or otherwise protected—some ransomware strains specifically target backup files to make recovery impossible.
Finally, businesses must reinforce their security posture after an attack. Any organization that suffers a ransomware incident and doesn’t immediately invest in better protections is almost guaranteed to be hit again. Attackers know which businesses are vulnerable and often return for a second attempt.
Ransomware Isn’t Going Away—Be Ready
Every year, ransomware tactics evolve. Cybercriminals refine their strategies, find new vulnerabilities, and increase their demands. The question isn’t if ransomware will strike—it’s whether businesses will be prepared when it does.
The companies that survive aren’t the ones that hope for the best. They’re the ones that invest in cybersecurity, train their teams, enforce strong authentication, and back up their data relentlessly. When ransomware comes knocking, being ready is the only thing that matters.
At TAG Solutions, we help businesses implement enterprise-grade ransomware protection, secure their data, and create a proactive security strategy.
